ENGLEWOOD, Colo. (AP) -- Business information and analytics firm IHS Inc. on Tuesday raised its full-year outlook to reflect its acquisition of R.L. Polk, the owner of the popular Carfax service.
IHS completed the $1.4 billion acquisition of the company, which collects data on auto sales, in July. It expects that the deal will provide a boost of 40-to-50-cents per share to the company for the year.
However, IHS also said that it is still feeling some ongoing pressure from weak spending trends from corporate customers, as well as the uncertainty from the broader economy. The Englewood, Colo., company also reiterated that its margins may suffer this year, due to cost of added investments in its business in a low-growth environment.
Shares fell more than 5 percent in afternoon trading.
IHS said that it expects to earn between $4.75 to $5 per share for the full fiscal year on an adjusted basis, with revenue between $1.8 and $1.82 billion. That is up from its forecast in June of earnings between $4.23 and $4.42 per share for the year on revenue between $1.66 billion to $1.73 billion.
Analysts polled by FactSet were anticipating, on average, earnings of $4.28 per share, after adjusting for special items and stock option expenses, on revenue of $1.67 billion.
"We are excited about the value we are creating through the combination of IHS and R.L. Polk," Scott Key, IHS president and CEO, said in a statement. "We also continue to see solid organic growth for the remainder of 2013, despite the lower global corporate-spend environment and the uncertainty that remains macro-economically, and we remain focused on our path to build from current levels in 2014 and beyond."
Shares fell $6.17, or 5.3 percent, to $109.74 in afternoon trading. Its stock remains at the upper end of its 52-week trading range of $83.02 to $118.93.
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